Developing Talent, Delivering Results: How Work-Based Learning Strengthens Companies and Careers
Companies continue to struggle with finding the skilled talent they need, and the process for recruiting and retaining talent is increasingly more expensive every year — challenges that will only sharpen as the rise of artificial intelligence (AI) and other emerging technologies reshape work. Employers and workers alike need faster, more effective ways to develop rapidly changing, in-demand skills.
Work-based learning (WBL) offers a solution. By connecting education directly to work, WBL allows companies to enhance their talent pipelines by ensuring that talent has the skills needed for successful employment. Rather than competing for the same talent, companies that invest in WBL build their own pipelines through internships, project-based programs, apprenticeships, rotational programs and other models that provide hands-on training aligned with an employer’s systems, culture and standards. WBL delivers a similar return on investment for prospective talent, providing them with employer-validated skills and one of the clearest paths to a well-paid career, which lowers the risk of unemployment or underemployment.
Business Roundtable member companies are already proving that WBL brings business value and expands economic opportunity for people. This resource makes the business case for WBL, outlines the spectrum of models available to employers, identifies leading practices for successful on-the-job programs and profiles how Business Roundtable member companies are investing in WBL models that deliver value to both business and individuals.
Outcomes of WBL Investments for Business Roundtable Member Companies
Business Roundtable member companies are seeing measurable hiring and retention benefits from their investments in WBL. A Burning Glass Institute analysis of Business Roundtable member companies found that:
- WBL at Scale: Business Roundtable member companies create over 650,000 internship, apprenticeship and co-operative opportunities annually, accounting for one in seven of these WBL opportunities across all U.S. companies.
- Hiring Impact: WBL participants represent an estimated 4% to 5% of new hires at Business Roundtable member companies.
- Internship Dominance: One in eight U.S. internships are at Business Roundtable member companies, resulting in a $77,000 cumulative pay premium for former interns after 10 years.
- Conversion to Full-time Roles: Nearly 40% of interns at Business Roundtable member companies receive and accept full-time offers. The professional services sector, including consulting and financial services, have higher conversion rates, with 50% or more of interns landing full-time roles.
- A Lasting Earnings Premium: Interns at Business Roundtable member companies out-earn comparable peers by 6% to 8%, even 10 years later. This wage premium persists even when interns do not lead to full-time roles at the company where they gained their experience. Those interns still out-earn comparable peers at the same rate.
- Skilled Trades Conversion: Business Roundtable member companies investing in the skilled trades are converting skilled trades apprentices to full-time employees at 6% to 7% above the national rate.
- A Pathway to the Middle Class: Most Business Roundtable member company employees who reach the middle class do so in their first job, with WBL functioning as an on-ramp. Specifically, over 80% of first jobs at member companies pay middle-class wages from day one.
- Strong Retention: Approximately 40% of workers remain at Business Roundtable member companies after five years, staying almost one year longer than the average worker in the economy. Employees are nearly two times more likely to still be at a member company 10 years later.
